Pressure on Minimum Wage Increase Continues


Flickr CC via Steve Rhoades
  The Democratic Party has publically asked fast food companies to increase their wages, citing the struggle of the middle class and economic recovery as reason to hire more people.  Fifty-three members of congress signed a public letter addressed to McDonald’s CEO Don Thompson and other restaurant executives last week.

  The letter is a response to rounds of protests this year from minimum wage workers that claim they do not make enough money to pay their bills and support their families.  The letter says that families cannot continue to life on “poverty-level wages”.

  Strikes that began in New York over the summer are spreading to over 100 cities in the country, asking not only McDonald’s but other large fast food chains such as Bruger King, Pizza Hut, Taco Bell and Wendy’s, who also received the letter from congress. 

Flickr CC via Steve Rhoades
  People worry that increased wages would result in higher food prices.  Analysts estimated earlier this year that a one-dollar increase in a Big Mac sandwich from McDonald’s would pay for the increase in wages.  McDonald’s so far has defended their wages, claiming they are “above minimum wage” and fair for entry-level work. The company also has suggested menu prices would increase with higher labor costs.  Further complicating the issue is that McDonald’s is a franchise business, meaning wages are set by individual owners.

  The average fast food worker earns about $9 per hour, which is less than $20,000 a year.  There is currently a bill in congress backed by the president that would increase minimum wage to $10.10.  Protestors for higher wages are asking for $15 per hour.

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